Feds bar Kansas City man from preparing tax returns

A Kansas City, Kan., tax preparer has been permanently barred from preparing federal tax returns for other people.

Ahferom Goitom, who managed an Instant Tax Service store in Kansas City, Kan., allegedly prepared “false and fraudulent income tax returns for others,” according to a release from the U.S. Department of Justice’s tax division. He consented to a civil injunction order without admitting to the allegations.

Instant Tax Service also has been targeted in four similar lawsuits filed throughout the country, aimed at shutting down four of the largest franchise owners and ITS Financial LLC, the brand’s Dayton, Ohio, franchisor.

The government’s complaint accuses Goitom of forging W-2s, using paycheck stubs rather than W-2s to file returns, getting larger tax credits by cooking up income for fake businesses, claiming false education tax credits and filing returns without customers’ OK. It also alleges that he sold deceptive loan products to customers.

Prosecutors said the KCK store is owned by Goitom’s brother and co-defendant, Semere Tsehaye. The suit against him remains pending.

In addition to the KCK store, Tsehaye owns five stores in Kansas City, Mo., all through A&S Tax Services, plus 14 ITS stores in the St. Louis area through ERI Enterprises, according to the complaint.

Prosecutors allege that the defendants aimed to maximize customer refunds — and thus their tax-preparation fees. The estimated tax losses from the alleged fraud topped $16 million last year, prosecutors estimated.

The other suits were filed in St. Louis, Indianapolis, Chicago and Las Vegas.